Budget 2018: Hammond to hike income tax relief a year early

UK deficit to reach lowest level in 20 years by 2023/24

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Chancellor Philip Hammond announced today (29 October) that the income tax personal allowance and higher rate threshold will be increased in April 2019, bringing forward the Conservative's 2017 manifesto promises by a year.

Plans to increase the personal allowance to £12,500 and the higher rate to £50,000 by 2020 - announced in May 2017 - will now kick in next year, Hammond revealed in today's Budget. Currently, the personal allowance is £11,850 and the higher rate £46,350. Borrowing The Budget also revealed the Office for Budget Responsibility (OBR) has slashed the borrowing forecast for this year by £11.6bn. Hammond announced that borrowing this year would be £11.6bn lower than the OBR predicted in March, adding that "we are no longer borrowing to finance spending".   Public sector net borrowin...

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